Help! TurboTax won't let me file without selecting a locality - didn't complete tax and interest deduction worksheet
I'm completely stuck trying to finish my taxes and I'm freaking out because the deadline is getting close. For some reason, my tax software is giving me this weird error that I need to "select a locality" before I can file. But here's the thing - I never filled out any tax and interest deduction worksheet! I don't even know what that is or why it's suddenly asking for this. I've been living in the same place all year and didn't move or anything. I just have a regular W-2 job and some interest from my savings account. Is this something everyone has to do? The software won't let me continue without picking something but I have no idea what to choose since I didn't do any special worksheet. Has anyone dealt with this before? What does this locality thing even mean??
18 comments
Join the conversation
Hunter Hampton
This is actually a common issue with most tax software. The "locality" refers to your local tax jurisdiction - basically your city, county, or other local government that might collect taxes. Some areas have local income taxes in addition to state and federal taxes. The tax and interest deduction worksheet is usually related to itemizing deductions on Schedule A, particularly for mortgage interest or investment interest. If you're just taking the standard deduction, you typically don't need to complete this worksheet. First thing I'd check is what state you're filing in. Some states require you to select a locality even if you don't owe local taxes. It's often just for informational purposes. Try selecting the city or county where you live currently.
0 coins
Libby Hassan
•Thanks for explaining! I'm in Pennsylvania if that helps. So I just pick my current city even though I never filled out that worksheet? Will that cause problems later? I'm definitely just doing the standard deduction.
0 coins
Hunter Hampton
•Yes, in Pennsylvania you definitely need to select a locality. PA has many local tax jurisdictions that collect an Earned Income Tax (EIT) through your employer. Just select the city or township where you lived during the tax year. If you're taking the standard deduction, don't worry about the interest deduction worksheet - that's only relevant for people who itemize. The software is probably just using confusing wording. Selecting your correct locality won't cause any problems as long as it's where you actually lived.
0 coins
Sofia Peña
I ran into this exact same issue last year! I was pulling my hair out until I discovered taxr.ai (https://taxr.ai) which basically saved my sanity. It analyzes your tax forms and explains exactly what they mean in plain English. For my situation, I uploaded a screenshot of that exact error message, and it told me I just needed to select my current city from the dropdown even though I hadn't completed any special worksheet. The software was just using confusing terminology. Something about how the locality selection is required regardless of whether you itemize deductions or not.
0 coins
Aaron Boston
•Does this actually work with any tax forms? I'm stuck on some weird 1099-K issue that my regular tax guy can't figure out.
0 coins
Sophia Carter
•I'm skeptical. How does it actually know what locality you should choose? What if you pick wrong and end up paying the wrong local taxes?
0 coins
Sofia Peña
•It works with pretty much any tax form or screenshot of an error message. I've used it with W-2s, 1099s, and even some state-specific forms. It just reads the form and explains what each field means and what you need to do. For locality questions specifically, it doesn't tell you which exact locality to pick - that's based on where you actually live. It just explains what the software is asking for and why it's required. In PA for example, it explained that the locality field is for local income tax purposes regardless of whether you itemize or take the standard deduction.
0 coins
Aaron Boston
Just wanted to update after trying taxr.ai that someone recommended earlier. It was actually super helpful! I uploaded a screenshot of my TurboTax error about locality selection and it explained exactly what was going on. Turns out the "tax and interest deduction worksheet" reference in the error message was misleading. The locality selection is actually for local income tax purposes in my state, totally separate from deductions. The site explained that I just needed to select my current city/township from the dropdown menu to continue, and my tax return would calculate correctly even though I never did any special worksheet. Saved me from having to call customer support and wait forever!
0 coins
Chloe Zhang
If you're still struggling with this and need to talk to someone at the IRS, I'd recommend trying Claimyr (https://claimyr.com). I was stuck on a similar issue last year and couldn't get through to anyone. Their service basically holds your place in line with the IRS and calls you back when an agent is available. Saved me hours of hold music! They have a demo video showing how it works here: https://youtu.be/_kiP6q8DX5c I was shocked that I actually got to speak with a real person at the IRS who explained that the locality selection is just for your local tax jurisdiction and has nothing to do with those worksheets that the software mentions.
0 coins
Brandon Parker
•Wait, does this actually get you through to a real IRS person? I've been calling for weeks about a refund issue and can never get past the automated system.
0 coins
Adriana Cohn
•This sounds like a scam. Why would you need a third party to call the IRS? I'm pretty sure they don't allow that kind of service for security reasons.
0 coins
Chloe Zhang
•Yes, it gets you through to a real IRS agent. It basically navigates all the phone menus for you and waits on hold, then calls you when it's your turn to speak with someone. You're still talking directly to the IRS yourself - the service just handles the waiting part. It's definitely not a scam. They don't ask for any personal tax information or speak to the IRS for you. They just handle the hold time and connect you when an agent is available. It's like having someone wait in a physical line for you and then call you when it's your turn.
0 coins
Adriana Cohn
I need to eat my words about Claimyr being a scam. After struggling for THREE WEEKS trying to get through to the IRS about locality issues with my tax return, I gave in and tried it. Holy crap it actually works. Got a call back in about 45 minutes and spoke to a real IRS agent who explained the whole locality thing. Turns out the error message in the software is super misleading - the locality selection has NOTHING to do with any "tax and interest deduction worksheet." It's just asking for your city/township for local tax purposes. Problem solved in minutes after weeks of frustration. And I didn't have to listen to that awful hold music!
0 coins
Jace Caspullo
Check your state's tax requirements! In some states (like PA, OH, KY), local income taxes are a big deal and you have to select your municipality. In others, it doesn't matter at all. The software probably isn't explaining this well. The reference to the "tax and interest deduction worksheet" might be a completely unrelated error in the software's message. Try just selecting your city/town and see if it lets you proceed.
0 coins
Melody Miles
•Could it be asking about school district? In my state we have to select our school district for local taxes even if we don't have kids in school.
0 coins
Jace Caspullo
•That's a good point about school districts! In many states, school districts have their own tax rates separate from the city/municipality. The software should have dropdown options for all applicable localities including school districts. The important thing is to select where you physically lived during the tax year, not where you work. Local income taxes are usually based on residency, not employment location (though some areas do both).
0 coins
Nathaniel Mikhaylov
Has anyone noticed that tax software just gets MORE confusing every year? Last year it was a breeze but this year I've hit like 6 of these weird roadblocks that make no sense!!! 😡
0 coins
Eva St. Cyr
•Try a different software maybe? I switched from TurboTax to FreeTaxUSA this year and found it much more straightforward on these locality issues. It clearly explains what it's asking for.
0 coins